Life had been going swimmingly, but now you have a sudden expense, and you need cash fast. Perhaps you have an unexpected medical bill or your home needs repairs after a damaging storm. The problem is that you lack savings and a reliable safety net. And because your credit’s not great, a traditional bank loan is out of the question.
But you’ve heard about title loans, which can be fast, accessible alternatives to bank loans. These loans use your car as collateral and don’t even require good credit. You wonder: Do banks do title loans? The short answer is no – most banks don’t. Here’s how you can potentially get the cash you need right away.
What are Title Loans? A Quick Overview
Title loans are loans that lenders secure with vehicles that borrowers have fully or nearly paid off at the time of applying. Because the lender uses the borrower’s car or truck as collateral, it will place a lien on the vehicle’s clear title. Once the borrower fully repays the loan, the lender will remove the lien from the title. Auto title loan amounts typically average between several hundred dollars to a few thousand, depending on the value of the vehicle, the applicant’s income, and the title loan lender.1 Since title lenders secure the loans with vehicles, they usually don’t require borrowers to have good credit. Rather, they focus on the vehicle’s value and the borrower’s income.1 Borrowers can keep driving their vehicle while making payments – as long as their account is in good standing. If they miss loan payments however, the lender can legally repossess their vehicle to cover the unpaid loan.
ChoiceCash title loans carry competitive interest rates that are usually lower than payday loan costs. And customers can have their cash in hand in just one business day – or even sooner.1
Do Banks Offer Title Loans? The Reality
Do banks do title loans? Traditional banks such as Chase or Bank of America typically don’t offer car title loans. They tend to focus on auto finance loans, which have longer terms, stricter criteria about income and credit, and are intended to finance the purchase of a vehicle rather than allowing a borrower to get cash.
Some credit unions, including Navy Federal and State Farm Federal Credit Union, offer “pledge loans”. However, such loans aren’t true title loans as they are secured against the balance in a checking or savings account.
The main reasons why consumers can’t get title loans from banks include the lending risk. Banks tend to avoid higher-risk products and lending to borrowers with below-average credit.
Why Banks Might Not Be the Best Option for Quick Cash Needs
If a consumer has a financial emergency and needs cash fast, a traditional bank may not be their best option. For one thing, banks tend to be comparably slow.
Traditional banks also usually have stringent credit requirements and need extensive documentation, which can slow approval and funding. Some may not offer online application convenience for urgent loan needs, and require applicants to visit a bank branch.
Potential Alternatives to Bank Title Loans
Even if you can’t get a title loan from a major bank, you likely have other options to get the funds you need – including ChoiceCash. Our title loans are, in fact, made by a bank. That means that we are subject to bank regulation, and our lending policies and processes are highly compliant and transparent. Although a bank makes our loans, ChoiceCash features flexible terms, no hidden fees, and fast access to cash.1
Other alternatives to title loans include:
- Personal loans from credit unions: It can be easier to get a personal loan from a credit union than a bank.
- Paycheck advance: Some employers offer interest-free payroll advances or loans that employees can take advantage of.
- Payday loans: Payday loans are an option for customers with poor credit. But compared to title loans, payday loans are usually smaller and carry higher interest rates and fees.
Ready for fast cash with your paid-off vehicle? Apply now for a free quote.1
Frequently Asked Questions
Here are some commonly asked questions about ChoiceCash title loans – and their answers:
- Can I get a title loan with poor credit? Yes, it’s possible to get a title loan with bad credit.
- How much can I borrow? The amount customers can borrow depends primarily on their vehicle’s value and their income. Typically, you can borrow up to half your vehicle’s value. You can borrow any amount you want within your approved loan range.1
- What if I can’t repay? If they know they can’t make a payment, borrowers should contact their lender or loan servicer right away to discuss potential solutions such as refinancing.
- How soon can I get loan funds? Once approved, you can receive your funds in one business day – possibly even sooner.1
- What documents do I need to qualify? To keep paperwork to a minimum, you’ll need proof of income, proof of state residence, a government-issued photo ID, a vehicle title in your name, and clear vehicle photos.
- How old do I need to be for an auto loan? You must be at least 18 years old to qualify for a ChoiceCash title loan.
- Does my vehicle need to be paid off to qualify? If you only have a few payments remaining on a car you’ve financed, or you’re close to the end of your loan term, you could still use your vehicle as collateral.1
- Do I need a bank account to receive funds or make loan payments? You do not need a bank account to receive loan proceeds or to make payments.
Available in more than 20 states, ChoiceCash loans are fast, accessible alternatives to bank loans. If you need cash right away get a title loan quote within minutes!1 Throughout the loan process, you can expect excellent customer service and support.